Document of

The World Bank

FOR OFFICIAL USE ONLY FILE COPY

Report No. P-3244-NIR

REPORT AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT

TO

THE REPUBLIC OF NIGER

FOR A

SECOND FORESTRY PROJECT

March 17, 1982

This document has a restricted distribution and may be used by recipients ody In the performance oftheir official duties. Its contents may not otherwise be disclosed witbout Word Dak authorzation.

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CURRENCY EQUIVALENTS

Currency Unit - CFA Franc (CFAF)

CFAF 1 million - US$ 3,704

US$l - CFAF 270

FISCAL YEAR

January 1 - December 31

ABBREVIATIONS AND ACRONYMS

CCCE - Caisse Centrale de Cooperation Economique (France)FAC - Fonds d-Aide et de Cooperation (France)INRAN - Institut National de la Recherche Agronodique du NigerIPDR - Institut Pratique de Developpeeient RuralMDR - Ministry of Rural DevelopmentPPF - Project Preparation Facility

ONAHA - Office National des Amenagements Rydro-Agricoles

FOR OFFICIAL USE ONLY

REPUBLIC OF NIGER

SECOND FORESTRY PROJECT

Credit and Project Summary

Borrower: Republic of Niger

Amount: SDR 8.8 million (US$10.1 million)

Terms: Standard

Project The project would consist of: (a) improving supplies ofDescription: fuelwood, building poles, tree fodder and other minor

forest products for the rural and urban population withspecial emphasis on a considerably expanded rural par-ticipation in afforestation; and (b) a continuation of theeducation and training process started under the firstproject (Credit 800-NIR), through reinforcing the ForestryDepartment, helping the Government develop a betterforestry policy and testing different approaches toforestry development in Niger in particular and the Sahelin general.

Project Risks: The project would inevitably involve risks given the lackof suitable technical packages for reforestation and thenewness of large scale tree plantations in Niger. Perhapsthe most risky component is the rural tree plantationsand the uncertainty as to the immediate responsiveness ofthe rural population to participate in the operation.Therefore, and although the Niger small farmer environmentseems quite receptive to reforestation, the componentwould be subject to ongoing evaluation to steer it towarddesired objective.

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

Seccird Forestry Project

Estimated Costs:

Foreign Local Total-------US$ million------

1. Civil Works 0.2 0.5 0.72. Equipment 1.7 0.5 2.23. Field Forestry Works 1/ 1.2 2.4 3.64. Operating Staff - 1.2 1.25. Expatriates and Consultants 1/ 2.2 - 2.26. Other Operating Costs 0.4 1.2 1.6

Total Base Costs 5.7 5.8 11.5Physical Contingencies 0.3 0.4 0.7Price Contingencies 1.9 2.7 4.6

TOTAL PROJECT COSTS 7.9 8.9 16.8

Financing Plan:

Foreign Local Total %

IDA 4.9 5.2 10.1 60CCCE 1.4 2.2 3.6 21FAC 1.6 - 1.6 10Government - 1.5 1.5 9

Total 7.9 8.9 16.8 100

Estimated Disbursements:

FY82 FY83 FY84 FY85 FY86 FY87

Annual 0.5 1/ 1.8 1.7 1.9 2.4 1.8Cumulative 0.5 2.3 4.0 5.9 8.3 10.1

1/ Includes US$0.4 million PPF advance.

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Rate of Return: The estimated average ERR is 14 percent

Staff Appraisal Report: No. 3632-NIR

Map: IBRD 15903

INTERNATIONAL DEVELOPMENT ASSOCIATION

REPORT AND RECOMMENDATIONS OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDITTO THE REPUBLIC OF NIGER

FOR A SECOND FORESTRY PROJECT

1. I submit the following report and recommendation on a proposedcredit for the equivalent of Special Drawing Rights 8.8 million (US$10.1million) on standard IDA terms to the Republic of Niger to help finance aproposed second forestry project. The CCCE and FAC would contribute US$3.6million and US$1.6 million respectively to the project.

PART I - THE ECONOMY

2. A report entitled "Economic Memorandum: Niger" (RN 1109a-NIR) wasdistributed to the Executive Directors on May 13, 1976. An economic updatingmission visited Niger in February 1981, and the main findings of the missionare incorporated in the following paragraphs. Annex I contains country data.

Background

3. Until recently, Niger was a resource-poor country. Consumption asa proportion of GDP was high and sometimes in excess of domestic production.Accordingly, gross domestic savings were very low or negative, and mostinvestment, modest at 12 percent of GDP, was financed by foreign savings.However, the situation changed in the 1975-80 period, reflecting rapidlygrowing uranium revenues: in 1979, at the peak of the uranium boom, uraniummining accounted for 16 percent of GDP, about 80 percent of total exportearnings, and 39 percent of government revenue. As a result, gross domesticsavings, which represented 9 percent of GDP in 1975 grew to 14 percent of GDPin 1979, while the country's resource gap decreased substantially from 14percent in 1975 to less than 8.5 percent of GDP in 1979. However, with thesharp drop in uranium prices in late 1980, which heralded a depression in theuranium market that is expected to last into the latter part of the decade,uranium revenues declined to less than 10 percent of total budget receipts in1981. With a per capita GDP of about US$330 in 1980, Niger remains among the29 least developed countries of the United Nations.

4. Despite the somewhat brighter outlook offered by uranium, Nigercontinues to face a number of formidable natural, economic, and human con-straints to development which will have to be overcome or alleviated toensure self-sustained economic growth in the long-run. First, many Govern-ment institutions are still in an embryonic state of development. Second,four fifths of the country is desert or semi-desert and in the rest, whichsupports about 80 percent of the population, soil fertility is low and pro-bably declining. In addition, rainfall is often irregular or inadequate and

the costs of irrigation schemes are unusually high. Third, the country'sland-locked position induces high transport costs and sometimes serious delaysin the delivery of imports. Finally, Niger has a primary school enrollmentrate of only about 17 percent, which is one of the lowest rates in the worldand has led to acute shortages of literate and qualified personnel at alllevels and in many fields in the economy. These problems are now beingcompounded by the sharply declining uranium revenues. With an ambitiousinvestment program predicated on maintenance of the real prices and increasingproduction, the five-fold drop in uranium revenues to less than 10 percent oftotal budget receipts in 1981 is already being felt in increasing budgetarystringency.

Economic Growth

5. Real GDP grew at 3 percent per year during the six-year period1972-78, while population grew at 2.7 percent. Between 1972 and 1975, real GDPrecorded negative growth, mainly as a result of severe drought-induced setbacksin agriculture and livestock production, compounded by the resulting recessionin agro-industries. In the subsequent three years (1976-78), the economypicked up considerably to achieve an annual growth rate of over 9 percent;however, 1979 and 1980 show some decline, moving to 7.5 percent in 1979 and6 percent in 1980. This reflects the impact of uranium mining and relatedactivities such as transport and construction, on the economy. Production ofuranium concentrates increased rapidly from some 400 tons to about 2,000 tonsbetween 1971 and 1978, while its export prices almost quintupled from US$20/kgto US$98/kg. However, with prices falling to about US$62/kg in 1981 afterremaining virtually constant in 1978-80, the constraining effects are likelyto limit GDP growth to 4 percent or less. Despite the vicissitudes in theuranium sector, growth in traditional sectors, in particular agriculture andagro-industry, has been modest.

Public Finance

6. Over the last seven years, sound fiscal management, with the helpof rapidly rising revenues from uranium mining, had enabled the Governmentto generate substantial current budgetary surplus. This amounted to aboutCFAF 9.6 and 16.1 billion in FY76/77 and FY77/78 respectively. Results for1978/79 show a further improvement to about CFAF 24 billion. These surplusespermitted rapid growth of capital expenditures in absolute as well as inrelative terms from CFAF 2.6 billion in FY75/76 (about 10 percent of totalbudgetary expenditures) to CFAF 13.6 billion in FY77/78 (32 percent) and CFAF17.6 billion in 1978/79. As a result, the contribution of budgetary savingsto total public investment increased from 10 percent in FY70/71 to more than28 percent in FY78/79. As a result of the drop in prices, however, thebudgetary savings ratio is likely once again to drop below 10 percent. On theother hand, the tax base has been undergoing significant changes in recentyears. First, Government revenue relies heavily upon uranium mining, revenuesfrom which have declined five-fold since 1979/80. Second, in an attempt toease the tax burden of low-income groups, a number of measures were introduced:livestock head taxes were abolished in FY74/75 following the 1973 drought, the

head tax levied on the population aged 14 years and over was completelyabolished in FY77/78, and income taxes on monthly salaries below CFAF 15,000were eliminated beginning FY77/78. The foregone revenues from those sourcesare estimated at about CFAF 4 billion. These fiscal measures reflect Govern-ment's increasing concern with the problems of social equity and particularlythe fate of the rural poor. However, at a time of considerable budgetarystringency imposed by the drop in uranium prices, the results in question aremaking the Government's overall budgetary situation even more difficult.

7. The annual rate of inflation averaged 8 percent over the period1972-75, but rose to over 20 percent in 1976 and 1977. Due to the normalharvests in 1977/78, inflation as measured by the implicit GDP deflatorlevelled off somewhat in 1978 at an annual rate of 12 percent, where it hasremained since. Three major factors contributing to recent inflation includethe supply constraint in basic commodities, especially in food, rising pricesfor imported goods, and rapid monetary expansion.

Balance of Payments

8. In spite of the rapid increase in export earnings from uranium,Niger's balance of payments continues to be characterized by a trade deficit:the imports required for operating the economy as well as for new capitalformation including development of new uranium mining still exceed foreignexchange earnings. This trade deficit was, however, more than compensatedfor by the inflow of foreign private and public capital so that the overallbalance of payments showed a substantial surplus until 1978. However, esti-mates indicate an overall deficit of about US$2.5 million in 1979, the firstin some years. The fall in uranium prices is likely to bring about a con-siderable reduction in total earnings in 1981 and beyond.

Development Planning

9. The Five-Year Development Plan, 1979-1983, was only recently pub-lished and identifies Niger's basic objectives as: (a) the modernizationof agriculture and livestock production; (b) a high rate of economic growthspurred by investments in mining, industry, transportation and communica-tions; (c) human resources development; and (d) a gradual reduction ofregional disparities in income. On an annual basis, the public investmenttarget implies an increase of 220 percent over the 1976-78 Plan. About 30percent of public investments over the Plan period will be allocated to ruraldevelopment, 30 percent to mining, energy and industry, 22 percent to educa-tion and health, and 18 percent to transportation and communications. Thetotal investment target of the Plan is US$3.5 billion in 1979 prices withUS$1.8 billion for public investment. Implementation of 1976-78 Plan fellfar short of its targets, largely due to a limited absorptive capacity anddifficulties in project preparation, caused primarily by manpower constraints.These are likely to continue being a major barrier to the implementation ofthe new Plan. In addition, the downward trend in uranium prices can beexpected to set further limitations on plan implementation; 42 percent ofpublic investments in the Plan are set out for Government financing.

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Foreign Aid

10. Between 1971 and 1977 Niger's total recorded net in-flow of re-sources from DAC countries and multilateral agencies averaged about US$80million annually, of which 95 percent was on concessionary terms. The Euro-pean Development Fund (FED), France, Germany and Canada remain Niger's majoraid donors, although recently Arab oil-producing countries have increasedtheir lending programs to Niger. However, in the two year period between1978 and 1980 external public debt more than doubled, rising from aboutUS$400 billion to US$855 million at end 1980, although indications are thatthe pace of commercial borrowing dropped substantially in 1981. About 25percent of new commitments originated from private banks and suppliers. Giventhe short grace periods and high interest rates now prevailing, debt-servicingobligations of the government doubled over the previous year in FY1980/81, andnow account for 14 percent of budget revenues.

11. Total debt outstanding increased by US$332 million to US$885 millionduring 1980; only US$355 million of that total had been disbursed by the endof 1980. Bilateral loans (disbursed and undisbursed), 53 percent of whichwere received from France, were only US$290 million of the 1980 total.Multilateral loans amounted to US$312 billion, US$138.1 million of whichrepresented IDA credits (16 percent of overall indebtedness). The remainderUS$283 billion, was divided almost equally between suppliers' credits andbanks, and given the heavy interest rates prevailing on these loans, overalldebt service, now only US$21 million, will rise nearly five-fold to US$98.8million in 1983, which, if uranium prices fail to rise, will exceed 20 percentof exports as compared with 3.3 percent in 1979.

12. Perhaps the major issue which Niger faces is how to scale down itsambitious 1979-83 Plan to expenditure levels which are consistent with thesharply reduced revenue offtake from the uranium sector. In light of thissituation, the Bank is discussing with the Government the need to tailor itsinvestment plan to a level consistent with its future resources and debtservice capacity. Whatever the evolution of these discussions, it is abundantlyclear that Niger continues to face substantial physical and human constraints,particularly with a literacy rate of 8 percent, near the lowest in the world.Given a resource situation with little promise for the next five to ten years,the extremely low level of development and the largely unmet basic needs ofthe population, Niger will continue to require concessionary, as well as localcost, financing for some time to come.

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PART II - WORLD BANK OPERATIONS IN NIGER

13. Nineteen IDA credits, including two supplementary credits, haveso far been approved for Niger totalling US$158.2 million. Annex II containsa summary statement of these credits as of January 31, 1982 and notes onthe execution of on-going projects. Past Bank Group lending was heavilyconcentrated on transport, communications and rural development. Of theseventeen projects approved to date, five aimed at expanding and upgrading thedomestic road network, one provided for improvement and extension of existingfacilities at Niamey international airport, one for the installation of a morereliable telecommunications system, and one for educational planning. TheAssociation's lending to date for the rural sector includes eight projectsfor drought relief, rural development, forestry, irrigation and livestock.Disbursement performance is similar to the average for other countries in theregion.

14. In keeping with Niger's overall development strategy, future BankGroup lending will continue efforts in the rural and transport sectors, butalso increasingly support Government efforts to diversify the economicstructure, expand modern sector employment, and meet manpower requirements.We will also continue to advise Government on policy issues and optionsthrough our economic and sector work.

15. In agriculture, Bank Group lending supports Government's generallysound strategy, namely regional projects aimed at increasing production,gradual development of the country's irrigation potential, provision ofservices to pastoralists, and crop-livestock integration. Due to the severityof the natural constraints and the present state of technical knowledge,agricultural and livestock development in Niger will be slow and difficult.However, experience with ongoing projects has demonstrated that potentialdoes exist, and can be realized with the provision of appropriate inputs andextension services. In transport, we plan to place emphasis on assistancefor the construction of a network of secondary and access roads to supportthe Government's agricultural program; a feeder roads project approved in FY79marks a first step towards this objective. We shall also continue our supportfor the maintenance of the existing infrastructure. The Bank is evaluating atechnical assistance project which would consist of feasibility studies forpriority projects, followed by the coordination and monitoring of projectactivities by line ministries and strengthening Niger's external debt manage-ment system.

PART III - THE FORESTRY SECTOR

16. Some 90 percent of Niger's natural forest cover consists of lowgrade savannah, thickets or bush. Only in the south are higher grade sudanianforests found. Classified forest reserves, parks and controlled forest areas

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cover about one million ha or 0.9 percent of the country's total area. Forestplantations cover some 20,000 ha. Numerous woodlots have been planted byvillagers and local groups, but these are often in poor shape due to lack ofmaintenance.

17. Forestry officially accounts for four percent of GDP; however, itsimpact on the economy is much greater. Natural forest savannah and bushprotect the soil from wind erosion, provide tree fodder and a dry weathergrazing reserve for livestock, and a source of fruit, fibre, fuelwood andbuilding poles to meet the basic needs of the rural population for heating,cooking and shelter. Fuelwood needs, which account for 90 percent of totalwood consumption, are at present estimated at some 3.9 million cubic metersper annum--almost double the average annual increment of the exploitablenatural forest cover--and are expected to rise to about 5.5 million cubicmeters by the year 2000. Demand is currently being met by overcutting naturalforest and bush, and in many areas, particularly around Niamey, the forestcover has been completely cut out. The resulting wind erosion of top soiland disturbance of the fragile ecological balance have led to development ofdesert conditions, declining soil fertility and degradation of large areas ofpotential agricultural land.

18. Hence, reforestation has become critically important. However,given the enormous imbalance between supply and demand, this would imply theestablishment of extremely ambitious tree plantations and natural forestmanagement programs that cannot be achieved under present conditions. Besides,the technical constraints to forestry development in Niger are formidable withonly a small part of the country reaching the 800 mm rainfall level and with alack of productive technical packages adapted to semi-arid conditions. Trialswith rainfed tree plantations have had varied and sometimes disappointingresults and although the possibility of producing wood under irrigation couldplay an important role, its economic viability remains to be established. Itis evident, then, that a long-term strategy for forestry development in Nigerwill require complementary measures to reforestation. The country willincreasingly have to look to potential wood substitution and to the adoptionof more efficient wood usage systems, e.g. better designed woodburning stovesor charcoal. It will also have to seek means to encourage the effectiveparticipation of the rural population in forest development. The proposedproject will address all these factors.

19. Prices. Despite significant real increases in fuelwood retailprices, permit prices have not reflected the value of wood to the economyor the real cost of increasing deforestation. Permit prices for wood sales(persons wanting to sell wood require a permit from the Forestry Department)have been fixed at a low level and increases in retail prices have representedmainly mark up by traders. A clear forestry policy to recuperate some ofthese profits has been lacking--given especially the lack of a clear knowledgeof the wood market and cost components involved and no well defined means ofsurveillance by the Forestry Department, there is at present little basis todetermine suitable adjustments in the stumpage fee. The project would there-fore support a two-year study of the wood market and appropriate stumpageprices. Assurances were obtained from Government that it would (i) fix

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acceptable stumpage prices for plantation wood before end-December 1983 and(ii) review with IDA by that same date the permit fee for natural forest woodwith a view to adjusting these prices to reflect the value of wood to theeconomy and to encourage wood conservation (Section 4.04, draft Credit Agree-ment).

20. Forestry Institutiors. The Forestry Department is one of fourtechnical departments of the Ministry of Rural Development (MDR). In spite ofrecent improvements in staffing, it is still understaffed and has difficultyin fulfilling its responsibilities given the magnitude of the forestry prob-lems. There is little planning and inventory control 1/ and management offield operations is generally weak. The situation is worsened by an inadequateallocation from the Government budget of funds, materials and operatingsupplies and the Department is unable to undertake reforestation or protectionof the existing forest cover on any significant scale. The proposed projectwould address these constraints through the provision of technical assistance,equipment and vehicles, training and operational inputs.

21. Training. Forestry training is provided in Niger at the "InstitutPratique de Developpement Rural" (IPDR) for middle level staff (B and C).Senior forestry officers have up to now been trained abroad but in the futurethey will be trained at the "Ecole Superieure d'Agronomie" (ESA) in Niamey.There is no formal training for lower staff (Level D), who are supposed tolearn on the job, though these are the actual executing agents. Forestryeducation curricula need to be improved by putting more emphasis on reforesta-tion and natural forest management. Junior level staff need training onforestry techniques, and field staff need refresher courses on reforestationand natural forest management. The proposed project would make appropriateprovision for such training.

22. Research. Forestry research is part of the activities of the"Institut National de la Recherche Agronomique du Niger" (INRAN) which reportsto the Ministry for Research. It has a major research program aimed atimproving forestry packages but has recently had difficulties following itsprogram since the departure of the chief researcher for medical reasons. Theproject, through provision of a new chief researcher co-financed by FAC, wouldreactivate the division.

23. Government Objectives and Strategy in the Sector. Since the drought(1972-74), increasing attention has been given to the role of forestry ineconomic development leading to a redefinition of forestry development pro-grams. These programs have three main objectives: (i) to protect the remain-ing natural forest cover from over-exploitation, encroachment, over-grazingand bush fires; (ii) to develop a sustained supply of fuelwood, buildingpoles, fruit, fodder, gum and minor forest products through efficient manage-ment of the natural forest cover and establishment of tree plantations; and(iii) to promote better uses of wood and use of substitutes. The main means

1/ A USAID-financed forestry and land use planning project, recently started,is going to take an inventory of existing forests and would establishan inventory control within the Forestry Department.

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to achieve these objectives are to: build up forestry institutions throughtraining, research, studies and provision of operating means; establishfast-growing tree plantations and improve management of natural forests;encourage the participation of the rural population in reafforestation; andsupport research into methods of improving forestry technical packages andefficient wood uses.

24. Woodstoves. To reduce firewood demand, Niger has been encouragingthe introduction of improved woodstoves. This is being done through projectsfinanced mainly by bilateral sources and non governmental organizations.Several improved woodstove projects are also in the preparation or planningstages and are expected to begin in the next few years. Thus, there is nolack of organizations or experts anxious to promote woodstoves in Niger, butthe danger to avoid is the promotion of inappropriate and unproven stovemodels as well as stoves not acceptable to the population. The project wouldtherefore not be involved in woodstove diffusion but would conduct a criticalanalysis of existing and forthcoming woodstove programs with a view to seekingout efficient woodstoves.

25. Rural Participation in Forestry Programs. Several rural forestryprograms began in Niger in the early 1970s. Most of these were financed fromexternal sources; they did not foresee any substantial participation of therural population and hence did not have the support of villagers. They wereconceived as village woodlots where in most cases the land was purchased fromfarmers and plantation works done by either project staff or by the forestryservices with hired labor. Subsequent socio-economic studies and the effortsof the IDA-financed Pilot Forestry and Technical Assistance Project (Credit800-NIR) in establishing rural nurseries indicate that farmers are interestedin tree growing, but that family and individual woodlots offer more tangibleincentives for participation than village woodlots and should be pursuedthrough a vigorous forestry extension effort. This impression is reinforcedby the experience under the Maradi Rural Development Project (Cr. 608-NIR)where the rural forestry program ran into a number of difficulties due to:(i) farmer reluctance to establish communal tree plantations; (ii) problemsrelating to land/labor competition between farming and tree planting; (iii)problems of protecting trees from browsing animals; and (iv) the low prioritygiven to such activities both by the extension services and by farmers. Theproposed project will address these issues (para. 28(a)).

26. Bank's Role in Forestry. The Bank group has financed forestryactivities under three earlier credits: First, the Drought Relief FundProject (Credit 441-NIR) provided financing for the improvement of gum arabicstands in the Manga area (Goure, Maine and Diffa). This was a successfuloperation that helped to stabilize and increase the incomes of some 5,000people badly affected by drought. A total of 6,250 ha of natural gum arabicstands were protected and harvested (see PPAR of July 2, 1979). Second, theMaradi Rural Development Project (Cr. 608-NIR) provided financing for theestablishment and maintenance of rural woodlots. The OED audit report has notyet been issued for this project. Third, the Pilot Forestry and TechnicalAssistance Project (Cr. 800-NIR), for which the proposed project providesfollow-up, aimed at strengthening the Forestry Department and establishing ona pilot basis irrigated and rainfed tree plantations. The rainfed plantations

have remained in good shape and progress has in general followed expectations.There has, however, been difficulty in finding good soils on which to plant,and the proposed project would emphasize site selection. Problems have beenencountered in the implementation of the irrigation component of the project.Investment costs per ha have been in line with appraisal estimates, butoperating and recurrent costs appear much higher than anticipated. There havebeen delays in receiving equipment and hence in connecting the pumping systemto the irrigation network; parts of the area have therefore not been effec-tively irrigated and will require replanting. The implementation of thiscomponent has shown the economic and technical difficulties associated withthe full scale irrigation system and will require close monitoring for thenext few years to assess what modifications are necessary in future suchirrigation schemes. In the context of the proposed project therefore, onlysmall irrigated plantation lots would be established along the boundaries andon non-agricultural soils of existing agricultural irrigation schemes. Thiswill have the effect of reducing investment and operating costs and the treeswould utilize water that would otherwise have been lost through drainage orpercolation, while protecting the irrigated perimeters from sandstorms andexcessive evapotranspiration. The completion report for this project will beissued shortly upon return of a mission presently in the field.

PART IV - THE PROJECT

Background

27. The project is the second phase of the Pilot and Technical Assis-tance Forestry Project. To permit an uninterrupted transition between thefirst and second projects, a US$360,000 advance was extended through theProject Preparation Facility in January, 1982 to finance some forestryworks and operating expenses. The project was appraised in May/June 1981.Negotiations for the proposed credit were held in Washington in February, 1982with a Nigerien delegation led by the Minister of Plan. A Staff AppraisalReport entitled "Second Forestry Project" (No. 3632-NIR) is being circulatedseparately to the Executive Directors. A supplementary project data sheet isat Annex III.

Project Objectives and Description

28. The project would build on the momentum gained in the pilot pro-ject to improve supplies of fuelwood and building poles, tree fodder andother minor forest products. This would be done through an expanded ruralforestry program, establishment of state-managed tree plantations for wood andgum-arabic production, natural forest management and protection of existingforests and plantations from forest fires. The project includes the followingcomponents:

(a) Rural Tree Plantations. The project would assist the rural popula-tion in establishing mini-nurseries for rural tree plantations on afamily/individual basis. To assist farmers in tree establishmentand maintenance, the project would train and equip forestry field

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agents and provide farmers with seeds, plastic bags and nurserysupplies. In addition to the normal support of the forestry dis-tricts given to such types of activities, a forestry counsellor atheadquarters as well as three regional forestry controllers wouldsupervise and support the agents. Advice would be given to farmerson: planting and maintenance procedures; the problems posed bydeforestation; the interrelationships between agriculture, forestryand livestock; and the potential benefits of afforestation. Allthese services and inputs (except for plastic bags) would be pro-vided free of charge to the farmers. Assurances were obtainedat negotiations that farmers would pay for the plastic bags at aprice which is not higher than their cost to the borrower (Section3.06, draft Credit Agreement). Given the importance of the ruralforestry component in terms of future replicability, and someuncertainty about the immediate responsiveness of all farmers, theproject would undertake a comprehensive field reconnaissance surveyin the first year to select the sites of the first mini-nurseries.The project would also undertake an ongoing evaluation of farmers-responses to the family woodlot approach to be able to early onidentify and alleviate constraints that may develop. To reserveenough flexibility, a mid-term review would also be undertaken andthe size of the component would be increased if initial responsewarranted it.

(b) Rainfed Tree Plantations. The project would continue to maintain760 ha state-managed of rainfed tree plantations set up underCr. 800-NIR and would establish an additional 1,500 ha through theproject unit. The plantation sites would be carefully selected onthe basis of preliminary soil surveys. It would also establish750 ha of gum arabic plantations, likewise through the project unit,and would protect 6,000 ha of natural gum arabic stands againstbushfires.

(c) Irrigated Tree Plantations. The project would continue to maintain240 ha of state-managed irrigated tree plantations established underCr. 800-NIR. It would also assist farmers working on irrigatedperimeters to establish 200 ha of tree plantations in areas un-suitable for crop cultivation. Sites would be selected in con-sultation with the national irrigation authority Office Nationaldes Amenagements Hydro-Agricoles (ONAHA) and agreement on therespective responsibilities of ONAHA and the Project would be acondition of disbursement of the component (Section 3.08 andSchedule 1, para. 3(b), draft Credit Agreement). It is intendedthat part of the operating costs for the irrigated perimeters wouldbe recovered on an experimental basis from wood sales and assuranceswould be sought for the establishment of a mechanism to collect suchfees by end-December 1983 (Section 4.03, draft Credit Agreement).

(d) Training. The project would establish and operate a small trainingcenter in Naimey to provide courses in reforestation for fieldforestry staff, especially at lower levels. Annual curricula wouldbe agreed on with IDA (Section 3.07, draft Credit Agreement).

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(e) Research. Given the need to develop technical packages suitable forarid and semi-arid zones, the project would provide support for theforestry research division of INRAN -- a chief researcher (to befinanced by FAC), vehicles, equipment and operating means to ini-tiate a research program appropriate to project needs and thelong-term requirements of the forestry section. Assurances weresought at negotiations that INRAN and the Project Unit w(:.ld enterinto an agreement by December 31, 1982 on the research program.(Section 3.08(b), draft Credit Agreement).

(f) Watershed Management/Erosion Control. Implementation of a piloterosion control program in a selected watershed.

(g) Management of Natural Forest. Management on a pilot basis of6,000 ha of natural forests.

(h) Bushfire Control. Implementation and management of a pilotbushfire control program.

(i) Project Unit. The project unit, established under the pilot pro-ject, would be strengthened to undertake the expanded responsibili-ties involved in the second phase project. In addition to theproject manager, the unit would now include five expatriatetechnical specialists and seven senior level Nigerien forestryofficers. A researcher, a financial and administration specialistand a workshop manager would be added to the rural engineer andtechnical advisor. The project would also provide office accom-modation, vehicles, equipment and furniture and would includeaccounting and audit services, consultants for studies, office andother operating facilities and staff travel.

(j) Planning and Monitoring. The project would provide support to theplanning, monitoring and economic studies unit within the ProjectUnit for technical and economic monitoring of the activities of thefirst and the proposed project and for studies: (i) organizationof wood marketing, (ii) optimal price structure for wood from plan-tations and natural forests, (iii) recurrent cost financing of for-estry projects, (iv) critical socio-economic and thermal efficiencyanalysis of existing woodstoves programs, (v) possible substitutesfor fuelwood, and (vi) reconnaissance surveys on rural forestry andwatershed management. The terms of reference for these studieswould be agreed upon during negotiations. The unit would be headedby a Nigerien forester assisted by the internationally-recruitedforestry technical adviser to the project manager.

Project Costs and Financing

29. The cost of the project (net of identifiable taxes and duties,from which the project would be exempt) is estimated at US$16.8 millionequivalent. Total costs include physical contingencies equal to 10 percentof estimated costs for civil works, equipment, inputs, seasonal labor and

operating costs. The allowance for expected price increase over the five

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years of the project is about 37 prcent of base costs plus physical con-tingencies. This was obtained by compounding foreign price increases at4.5 percent for second half of 1981, 8.5 percent for 1982, 7.5 percent for1983-85 and 6 percent for 1986, expatriate staff costs at 10 percent for1981 and 9 percent thereafter, and local price increases at 13 percent for1981 and 10 percent/year for 1982-86. US$7.9 million (about 47 percent)are foreign exchange costs. The proposed IDA Credit of SDR 8.8 million(US$10.1 million) would finance 60 percent of total project costs, includingUS$4.9 million of foreign exchange costs and US$5.2 million of local costs.It would include financing of salaries for rural forestry field agents on adeclining basis, as Government increases its contribution (see para. 35).The Government's participation of US$1.5 million would cover 9 percent oftotal project costs. CCCE/FAC participation of US$5.2 million wouldfinance 31 percent of total costs. Project costs and proposed financingplan are summarized in the Credit and Project summary. As indicated inPart I, current economic circumstances--in particular the sharp and un-expected drop in uranium revenues--justify the financing of local costs.

30. Meeting all the conditions precedent to the effectiveness of theCCCE credit and to the FAC grant, and agreement with FAC for appointmentof the Technical Advisor would be conditions of effectiveness (Section6.01 of draft Credit Agreement).

Project Execution

31. The Project Unit would be responsible for planning, implementing andmonitoring all project activities, and providing support and guidance to theforestry districts involved in implementation. The Unit would prepare anannual work program and budget which would be submitted before the beginningof each financial year to IDA for comments (Section 3.05, draft Credit Agree-ment). A work program for the first year has already been agreed with IDA.The organization and management of the plantations within the irrigatedagricultural perimeters and of research would be done by the Unit in coopera-tion with ONAHA and INRAN respectively. The planning, monitoring and economicstudies unit in the Project Unit would monitor and evaluate project perfor-mance. This would include a critical cost-benefit analysis of the irrigatedand rain-fed tree plantation components of the first project, an ongoingevaluation of farmers' responses to the rural forestry component and recom-mendations for improving implementation of the component, if constraintsdevelop. The unit would also coordinate closely with the forestry researchersat INRAN to define a technical monitoring program for all project activities.The unit would provide IDA with a detailed evaluation report on projectprogress each six months. This would form part of the half yearly report tobe submitted by the Project Unit to IDA. The unit would prepare a projectcompletion report within six months of the completion of the project (Section3.09(d), draft Credit Agreement).

Technical Assistance

32. To implement the project, five expatriate experts would be employedat an estimated cost of US$8,500 per man-month. A total of 23 man-months of

- 13 -

consultant services at an average cost of US$12,000 per man-month would befinanced by the project to help the unit undertake various studies and audit.The estimated costs include salaries, allowances and overhead.

Working Fund

33. To ensure that plantation works are carried out immediately whenneeded, initial working funds of US$400,000 to prefinance operating expendi-tures would be provided as follows: IDA (US$300,000) representing its share ofestimated quarterly contribution to operating expenditures, and Government(US$37,000) representing its share of estimated quarterly contribution tooperating expenditures. CCCE has indicated a willingness also to contributeto the working funds once its participation is confirmed. The IDA funds wouldbe deposited in a Special Account established for that purpose; the Governmentcontribution would be deposited in a Project Account. The establishment ofthe accounts as well as Government's payment of its initial deposit in theProject Account would be a condition of credit effectiveness (Section 6.01(a),draft Credit Agreement). Assurances were sought at negotiations that theProject Account would be replenished at least quarterly on the basis ofsupporting documentation for expenditures incurred and cash forecasts made byproject management in order to have sufficient funds to meet project expendi-tures for the following quarter. IDA would replenish the Special Accountupon receipt of evidence of disbursements from the Special Account for allow-able expenses. Should any disbursements be made from the Special Account thatare not acceptable to IDA, the Government would deposit the correspondingamount into the Special Account. Assurance to this effect were obtainedat negotiations (Section 2.02(f), draft Credit Agreement).

Procurement

34. Field forestry works (a total of US$5.4 million of which US$3.8million to be financed by IDA) are customarily executed by Forestry Depart-ments (force account), represent their major operational function, andwould be done by the project unit. From experience, because of theirlocation and small size, contracts for civil works, houses,. offices andworkshops (a total of US$1.0 million of which US$0.7 million to be financedby IDA), would not be attractive to international contractors and would beawarded on the basis of competitive bidding advertised locally. Procure-ment of machinery, vehicles and equipment would be grouped in packages ofover US$100,000 where possible and would be awarded on the basis of inter-national competitive bidding (ICB) in accordance with IDA guidelines.Contracts for domestically manufactured goods which amount to less thanUS$100,000 but for more than US$25,000 would be procured on the basis ofcompetitive bidding procedures advertised locally and contracts for lessthan US$25,000 would be procured by direct shopping on the basis of atleast three quotations.

Disbursement

35. The Credit of US$10.1 million would be disbursed over five years asfollows:

- 14 -

(a) civil works: 70 percent of total expenditures (US$0.7 million);

(b) field forestry works including inputs, operating costs, seasonaland permanent labor: 70 percent of total expenditures (US$3.0million);

(c) machinery and equipment (excluding those financed by CCCE--dumpertrucks and tractors): 100 percent of costs (US$1.9 million);

(d) expatriates and consulting services (excluding those paid byFAC): 100 percent of costs (US$1.0 million);

(e) project operating costs: 63 percent of total expenditures(US$1.4 million);

(f) rural forestry field agents salaries: 100 percent of costs duringfirst two years, 55 percent the third year, 25 percent the fourthyear, 0.0 percent the fifth year (US$.3 million); and

(g) Special Account: (US$0.4 million).

In addition, the PPF advance of US$0.4 million would be refunded upon effec-tiveness of the Credit and US$1.0 million would remain unallocated. Disburse-ments would be fully documented except for categories (b) and (e) abov3.These involve small purchases and disbursements would be against statements ofexpenditures, which wculd be audited.

Accounts and Audits

36. The accounts of the first project were satisfactorily kept with thehelp of ONAHA's accountant and by a junior accountant employed by the project.The size of the second project, however, requires the services of a full timeaccountant who would be appointed under the project. All Project accountswould be audited annually by independent auditors acceptable to IDA. Auditedfinancial statements and reports would be submitted to IDA within six monthsof the end of each financial year (Section 4.02, draft Credit Agreement).

Financial and Economic Analysis

37. At full development, total annual wood production under the projectwould be 39,000 m3 (excluding an annual wood production of about 11,000 mfrom the plantations of the first project), less than 9 percent of currenturban fuelwood demand. No marketing problems are therefore expected formarketable project output (including production from the first project).The demand for fuelwood in the rural areas remains high and all the woodproduced in the rural forestry component is expected to be absorbed by thesector. Given the shortages of building poles, poles from the project shouldfind a ready market.

- 15 -

38. The project would generate sufficient Government funds to financecontinuing project activities after the 5 year implementation period. Afterbeing negative during the first two years, the cumulative cash flow afterdebt service for both IDA and CCCE credits (including debt service for thepilot project) would turn positive from year 3. The cash flow is calculatedby including the costs of maintaining and receipts from the state-managedrainfed and irrigated tree plantations of the first project.

39. Economic rates of return have been (,tlculated only f.,r the directlyproductive components (44 percent of project costs), where benefits can bequantified with a reasonable degree of certainty, with berefits courited asfuelwood, poles and gum arabic. The economic rates of retura are as follows(share of project costs in parentheses): tree plantations in irrigatedperimeters - 35 percent (6 percent); rainfed tree plantations 10.1 percent(17 percent); rural tree plantations - 13.9 percent (12 percent); gum arabicplantations - 10.9 percent (9 percent). The weighted average economic rateof return has been estimated at 13.9 percent. The economic analysis did notquantify other direct benefits that would accrue from the project. Theseinclude the beneficial effects that trees, planted as windbreaks, can have onoutput and the fact that planting trees for fuelwood and fodder avoids cuttingalready existing ones. Over the five-year implementation period the projectis also expected to generate about 1,500 man-years of direct employment forunskilled labor.

Benefits and Risks

40. The project would continue the institution building process startedunder the first project. This would enable the Forestry Department to plan,implement and monitor its work more effectively. It would help the Governmentmap out an effective pricing and permit policy for firewood and seek feasiblealternatives to present firewood use to limit future over-exploitation offorestry resources. The project would improve the knowledge about the respon-siveness of rural populations to large scale afforestation schemes, and exposethem to tree planting as an important part of their agro-sylvicultural system.The project would also provide valuable knowledge about the effectiveness andcosts and benefits of irrigated tree plantations in Niger in particular andin the Sahel in general, given the lack of suitable technical packages forreforestation in Sahelian countries. The project would help test new forestryproduction and management techniques through the applied research and naturalforest management components and therefore help improve forestry technicalpackages available to the country.

41. Given the limited knowledge about reforestation in Sahelian countries,the harsh climate, and the newness of large scale tree plantations in Niger,the project necessarily involves risk. However, project design and assump-tions on yields have been made so as to minimize this. Although the Nigersmall farmer environment seems to be quite receptive to reforestation, thereis a risk that the rural population would be unwilling to participate in theoperation. Therefore, particular attention will be paid to incentives andsociological aspects in this component. Other components face only minorrisks in terms of reduced benefits or increased costs. Yield expectations are

- 16 -

based on best estimates, though given the newness of forestry operations inthe country, the lowest known yields under similar project conditions havebeen used and cost estimates are based on actual costs of past planting. Theproject also includes an ongoing evaluation to identify and correct at anearly stage constraints that may develop.

PART V - LEGAL INSTRUMENTS AND AUTHORITY

42. The draft Development Credit Agreement between the Republic ofNiger and the Association and the Recommendation of the Committee provided forin Article V, Section l(d) of the Articles of Agreement of the Association arebeing distributed to the Executive Directors separately.

43. Special conditions of the project are listed in Section III ofAnnex III. Conditions of effectiveness would be that: (i) the TechnicalAdvisor financed by FAC has been employed; (ii) all conditions precedent tothe effectiveness of the CCCE Credit and the FAC grant have been met; and(iii) a Special Account and Project Account have been opened and the Govern-ment's initial deposit of US$74,000 equivalent representing its estimatedquarterly contribution to project costs has been made to the Project Account.

44. I am satisfied that the proposed Development Credit would complywith the Articles of Agreement of the Association.

PART VI - RECOMMENDATION

45. I recommend that the Executive Directors approve the proposedDevelopment Credit.

A. W. ClausenPresident

AttachmentsMarch 17, 1982

- 17 - ANNEX IPage 1 Of 5

TABLE 3ANIGER - SOCIAL INDICATORS DATA SHEET

NIGER REFERENCE GROUPS (WFICHTED AVERAGESLAND AREA (THOUSAND Sq EM.) - MOST RECENT ESTIMATE)-

TOTAL 1261.0 MOST RECENT LoW INCOME MIDDLE INCOMEAGRICULTURAL 124.1 1960 /b 1970 /b ESTIMATE /b AFRICA SOUTH OF SAHARA AFRICA SOUTH OF SAHARA

GNP PER CAPITA (US$) 110.0 140.0 270.0 238.3 794.2

ENERGY CONSUMPTION PER CAPITA(KILOCRAMS OF COAL EQUIVALENT) 5.5 25.4 48.4 70.5 707.5

POPULATION AND VITAL STATISTICSPOPULATION, MID-YEAR (THIOUSANDS) 2875.8 4008.0 5163.0URBAN POPULATION (PERCENT OF TOTAL) 5.8 8.4 12.0 17.5 27.7

POPULATION PROJECTIONSPOPULATION IN YEAR 2000 (MILLIONS) 9.7STATIQNARY POPULATION (MILLIONS) 29.0YEAR STATIONARY POPULATION IS REACHED 2130

POPULATION DENSITYPER SQ. EM. 2.3 3.2 4.1 27.7 55.0PER SQ. KM. AGRICULTURAL LAND 22.6 32.0 40.4 73:7 130.7

POPULATION AGE STRUCTURE (PERCENT)0-14 YRS. 44.8 46.3 46.8 44.8 46.0

15-64 YRS. 52.6 51.1 50.7 52.4 51.265 YRS. AND ABOVE 2.6 2.6 2.5 2.9 2.8

POPULATION GROWTH RATE (PERCENT)TOTAL 2.3 3.3 2.8 2.6 2.8URBAN 4.1 7.0 6.8 6.5 5.1

CRUDE BIRTH RATE (PER THOUSAND) 51.8 50.7 51.5 46.9 46.9CRUDE DEATH RATE (PER THOUSAND) 26.5 23.7 21.7 19.3 15.8GROSS REPRODUCTION RATE 3.5 3.5 3.5 3.1 3.2FAMILY PLANNING

ACCEPTORS. ANNUAL (THOUSANDS) .. ..

USERS (PERCENT OF MARRIED WOMEN) .. ..

FOOD AND NUTRITIONINDEX OF FOOD PRODUCTION

PER CAPITA (1969-71-100) 112.0 96.0 89.0 89.5 89.9

PER CAPITA SUPPLY OFCALORIES (PERCENT OF

REQUIREMENTS) 90.0 89.0 91.0 90.2 92.3PROTEINS (GRAMS PER DAY) 59.0 57.0 64.0 52.7 52.8

OF WHICH ANIMAL AND PULSE 18.0 19.0 27.0 17.8 16.1

CHILD (AGES 1-4) MORTALITY RATE 41.0 34.7 31.3 27.3 20.2

HEALTHLIFE EXPECTANCY AT BIRTH (YEARS) 37.2 40.6 43.0 45.8 50.8INFANT MORTALITY RATE (PERTHOUSAND) 2D0.0 ..

ACCESS TO SAFE WATER (PERCENT OFPOPULATION)

TOTAL .. 20.0 27.0 23.9 27.4URBAN .. 37.0 38.0 55.0 74.3RURAL .. 19.0 26.0 18.5 12.6

ACCESS TO EXCEETA DISPOSAL (PERCENTOF POPULATION)

TOTAL .. 1.0 7.0 26.2URBAN .. 10.0 36.0 63.5RURAL .. .. 3.0 20.3

POPULATION PER PHYSICIAN 82165.3 58087.0 42719.3 31911.8 13844.1POPULATION PER NURSING PERSON 8

451.0/c 7019.3 6267.5 3674.9 2898.6

POPULATION PER HOSPITAL REDTOTAL 1954.0 2220.5 1391.4 1238.8 1028.4URBAN .. 358.6 407.2 272.8 423.0RURAL .. 4230.4 1958.2 1745.2 3543.2

ADMISSIONS PER HOSPITAL BED 10.4/d 34.7/e

HOUSINGAVERAGE SIZE OF HOUSEHOLD

TOTAL .. ..URBAN .. ..RURAL .. ..

AVERAGE NUMBER OF PERSONS PER ROOMTOTAL .. ..URBAN .. .. .. .RURAL .. ..

ACCESS TO ELECTRICITY (PERCENTOF DWELLINGS)

TOTAL .. .. ..URBAN .. .. ..RURAL .. .. ..

- 18 -ANNEX 1Page 2 of 5

TABLE 3ANIGER - SOCIAL INDICATORS DATA SHEET

NIGER REFERENCE GROUPS (WEIGHTED AV5RAGES- MOST RECENT ESTIMATE )-

HOST RECENT LOW INCOME MIDDLE INCOME1960 /b 1970 /b ESTIMATE /b AFRICA SOUTH OF SAHARA AFRICA SOOTH OF SAHARA

EDUCATIONADJUSTED ENROLLMENT RATIOS

PRIMARY: TOTAL 5.0 14.0 23.0 56.4 73.7MALE 7.0 18.0 29.0 70.7 96.8FEMALE 3.0 9.0 17.0 50.1 79.0

SECONDARY: TOTAL 0.3 1.0 3.0 10.0 16.2MALE 0.5 2.0 4.0 13.6 25.3FEMALE 0.1 1.0 2.0 6.6 14.8

VOCATIONAL ENROL. (S OF SECONDARY) 4.0 3.0 2.0 8.0 5.3

PUPIL-TEACHER RATIOPRIMARY 43.0/c 39.0 41.0 46.5 36.2SECONDARY 17.0 20.0 23.0 25.5 23.6

ADULT LITERACY RATE (PERCENT) 1.4 .. 8.0 25.5

CONSUMPTIONPASSENGER CARS PER ThOUSAND

POPULATION 0.3 1.4 2.1 2.9 32.3RADIO RECEIVERS PER THOUSAND

POPULATION 3.3 36.2 .. 32.8 69.0TV RECEIVERS PER THOUSAND

PUPULATION .. .. 0.1 1.9 3.0NEWSPAPER ("DAILY GENERALINTEREST") CIRCULATION PERTHOUSAND POPULATION 0.3 0.5 0.6 2.8 20.2CINEMA ANNUAL ATTENDANCE PER CAPITA .. 0.2 .. 1.2 0.7

LABOR FORCETOTAL LABOR FORCE (THOUSANDS) 945.9 1276.1 1610.1

FEMALE (PERCENT) 9.0 9.7 10.0 34.1 36.7AGRICULTURE (PERCENT) 95.2 93.0 91.2 80.0 56.6INDUSTRY (PERCENT) 1.4 2.0 2.9 8.6 17.5

PARTICIPATION RATE (PERCENT)TOTAL 32.9 31.8 31.2 41.7 37.2MALE 60.2 58.1 56.7 54.3 47.1FEMALE 5.9 6.1 6.2 29.2 27.5

ECONOMIC DEPENDENCY RATIO 1.4 1.5 1.6 1.2 1.3

INCOME DISTRIBUTIONPERCENT OF PRIVATE INCOMERECEIVED BY

HIGHEST 5 PERCENT OF HOUSEHOLDS 23.0HIGHEST 20 PERCENT OF HOUSEHOLDS 42.0LOWEST 20 PERCENT OF HOUSEHOLDS 6.0LOWEST 40 PERCENT OF HOUSEHOLDS 18.0

POVERTY TARGET GROUPSESTIMATED ABSOLUTE POVERTY. INCOMELEVEL (US$ PER CAPITA)

URBAN .. .. 133.0 136.0 381.2RURAL .. .. 63.0 84.5 156.2

ESTIMATED RELATIVE POVERTY INCOHELEVEL (USD PER CAPITA)

URBAN .. .. 133.0 99.1 334.3RURAL .. .. 53.0 61.2 137.6

ESTIMATED POPULATION BELOW ABSOLUTEPOVERTY INCOME LEVEL (PERCENT)

URBAN .. .. .. 39.7

RURAL .. .. 35.0 68.8

Not availableNot applicable.

NOTES

/a The group averages for each indicator are population-weighted arithmetic means. Coverage of countriesamong the indicators depends on availability of data and is not uniform.

/b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969and 1971; and for Most Recent Estimate, between 1976 and 1979.

/c 1962; /d 1964; /e 1966.

May, 1981

-19 - ANNE 1

Pa-e o f 5OtFiblITIOgS OF SOCIAL INDICATORS

Ots Although ic dsar dret 10 ro souce geeal-ugdte- nbretlead reliable, it should also be -te that they ey not ha laernaIonall copral beeeeo helc ofsened Ia defititlon and concpt need by differen.t c-nties In eletn the du.U.Thdaere n-chelese, uefulod _aribe reso _ anhts,inict treds, an huai -ic etin ujor diff-rece betee outrn

The eeec gops_so Ci) the esnco -rygop of the subject country cad(2 a oar ru Okssna ihravrgVrcete h nae re

coctocoltual efititss).In the ref--to Stup date the vrge r popalation weighted arithtto -ee ten each iedicet- sa heselyseajorit of th counties ita groa ha dat for t%hattnort . Since the co-rsg f oetrise amon the indicaor. ep.. nh avalhliy of t

and e to unfore cauiongnathennrcied i reltin I vrgnI foetnteo to a-oh-r meanan-rgre are only ... efn1 ttceai n the valu efon idIneto acclT usn tiI-- he -ontry and referneg- ne

LAIfE hREA (choo..und eqik..) 'pvaonrrHsial hd - total. nrber endintl Pplto ntlTota - T-tu1 -af-r urea c c Inglad as atd lad enter. aro,sdrr i ivde by rhler r-eperi- nter at heaitl hds

Aatuiol-Ttimte of egriruliua ae ee apor-rily or perenatly -1tailuh in rblic and privat genra an.d aperia1iud heaittal sad r-forcops p -trs,su t eod kitchen garden o t lie fallow; 19i data. huhilitati-n cener. Inpcsat. satebiteheam paestly atAffad

by at leat oePhyalta.- raE-bhil .ent p-eidtng Pn1i"rpaly raimp Pta CAPIT Col il nPits est IIates at -- ret -akb- prices, cal- dial casaent incladd. tRe .. ptea Ihoweer lmisde b.it

Iulatadbyse c -vrno ehd an Wrld Honk Atlue (1977-79 heels) ; 1960, en ioirntr e pbeastystfe hoA physL.Ita (hen hy a17,ed170 dte, medical.. aei-tao nure,Pidwt.er rhlch aff- im-Putise sat

dagia end P-id.A a limIted saef eadinal f-ciltag*- Per aneti'-EWEtb.c iCoSenorT'Io Pit CAPIlA - Annua c-naptiot of ccece.l soary (coal tana rerpvae amen hepituls tealu.e vme pnartpa/gainellb nae

end lignita. parrlu, natra P.s an hydr--. nuclea andgethrml s- and reral hesPttl.14 le_a en nae hepitala -ad aeirl -d t-fttyctronlly) cc kilog-e of coal eqn.. t Par capita; 1960, 1970, and 1979 canen,. PIpeleltedhpries inclodd naly aMer ntal.dare. Amnlg a Lental ledS - lna en of adeleinne to endtsoerg

ftru hospitals gidad by the ncar, nf bade.yOrVL,TIon MDot 'CtAL, oyniut-

TrialP1 natonKid-Year (thousands) -Aof Jo1y 1; 1960, 1970, ond 1979 wuitJ

U~irhen Pouaio (rerc.rt of toa)-titl of -brion to .dIa ppuletiet; A heIaINIheld .inmatn Of a~ grey efIndivideals nb soe llle gagditfeent dfInitons f orb_a onsy affect coa prabiIity of data aa their welt seal. A hoarde -orldge -y or may ear h genled h

eeonoc.u.tctne; 09th, 1970, an 1919 data, the honehoid foI ttitIa parIse

Pvrlation, yrjetloe Aveaatg frroeerrn ne.aia drri-ecg poenlatlrn I year 2000 -Corrart popuetlot prolecione ate hosd on 1950 herat reen ar ee in allahn sdrnlcoLed ae tl-slrocal population by INe and sea und thei. nrgittn fertiiity rae.delig, prtvl..elig .eld aa.. ae stenese

1_ng li;1 n Itacaly ahItchinresig th cunry-pe cp...ntn ccsit PetrcLO(Wrot ofIeeie Pa - ee.ahs.a nelee,adfeele life enypoct-y tbca !btinn t7. yas Th. para- Con 1tea wlingt wi mlnrntyi tig aiters eN pns

eaters for fertility rate .1c have three levlsesat decline In of total, urban, andrradsltgreptvlyfertility Iacc.nding tc Locoe leve and Past fomily pAnaing perfnrst..tach no-icy is than aeindoeo teenn oetnitos of eatDUC tttATIO

Stationer norulatlon - n tatoaypoplato thorn Ie an gr-vh sInc Pmr arol-teaa.sl MtaeAesttl,sl efthe kinkh rats ieequa totreth rate, and .als the uge tr-onr on-seoleet of all ages at the pri-ny leve en Psre.-um adespn

nira constant. TIs Isaninved only after fgrtility ratn deolin to primay noo-uepepelenioms; nrly hoindee edidese Nd 4-lInhe trolaman 1-vr of vot et ,rpndeaton vans, rde each genartin er enajee far differe leagth at P11eey ean.:teofsoen cerlaca. islt.I enrtly The sttonr ppti tn alas- a nenerhasII. h anreen adenaienerua - yU II ea.d be par-nsI Iscd or tie basis of the projectd cIatrtrc f theFnnltln sine s pnplis ar helen or shav the efffLal enn "P.

in the yaar 2000,. ad the rate of dacinn o-f fnrttlityra.ts-tr.plana- S...""ue ethel - total mal sad hle - Cqatad asb~ 55....eM.a.ma- mI... educatio ruieat lest fea yer of arrea pniey_ iea

Yea sitm-or Pcrulotlon Ia t-ohad - The yea. hy. oi. oypplttnpela geneval vocatinal,Io teache ntlging nenetnitss toe pWia-ne h.e -er -eid. enllyof 12 to 17Year of ega; -o-sposacsnnrm grgenraly

Per en. h. - hid-yrsr populatict Per square kiltts (100 heotatas) of On..tattesl enrele_t (eartet nf anedre _Oitise_lim utitotal er_o; 1960;, 1~9710 arId1979 data. L-tlde iehta,Odueri.l, en nthen prepa ktbn we edpPr e. i arcu_ua lad-Creputed e above for sgiulalln early orn dyutae-t of seredaryiitnaa

torulatot AteOtracrue (rerent) -Childre (0-14 year), -erin-gs. (15- prim-r an -sneduy levels divided by Ifr a -bt raen he th64 yer),ed -atrd(6 yrsAnd ove) As parcet.agg of tdd-y-u PaIN- rrepet ees

lein 1967, 1970~.-nd 1979 data. Aet ltrn raet. pet - Literat edema (WAb. ase AS ghomPopulatnot Ir_nh hat Cr-cen) - total - dcAl1 ecteh rates ct.tot1id- AssI PAr- ecag of irnnl adam papa,itIo ass ii year Meevr

y-s popu.i.c.on f no 1950-h0. 1960-70. sad1970-y9.Prstnitr-th atn Cpnr-etl - urban- Anel growh rate of -nben too- CWmSWWTI

1-i.ns tot 1950-60, 1960-70, etd 1970-79. Pasene Cars ( fotnheueed noenltta)-PemgrtasnigsweCrude nirtchat (tea thoused) -- 1a live bitrt Per rhoasn..d of sid-yn- orsurelaetneight peron; eniades b1e.hsre M

poplain; 9k.,17, 197 197 dta mlitr vahbIriC-da Death hats (tar thonsnd)9-Anneal deaths oar thousands If eld-,eur Radio ge-iv-re(... th Isd enrlAt IN) - All no,nee of earirw far rsdh

p Iplatrn 196.0. 1970, and 1979 data. brosdtan~,ts nlgearl probl1n par thnneaed of gpeValata; al.dss

her n..-I capr-ductive petiod if sh. anpariac- Preen.a t gn-spncttir fa- etens. tE nfnt; dat tnt rae-t yer sey one heaqaalMrdilty rates ualy tIre-yea avagn endin in 1960, 1970,. sd 1979. eatcere hliehe Iirseelg.

Ps-nv Plnoi - Acpoa cul(thousads) dana ni-her cf n..ara... SfTVcnr (net t--need -anlAtiem - TVreavs ten b-rAsda tof birth-control device ender tasPings of neional fatly pI.ian g po.gr-. genralprtlic per thensed pegelutno; enledee wIlead. STVetirPsiyPntn-ar (I ra " f ane omn - P..eneg o. f earind n inetis -ad in penr eham rIitar f TV est -a . sff-tr

women f chil-hesrtg gee(115-64 y_er) fouebirth-cotrLd-vi... to Wmven Crala..ltLom Iea tinseesed hnewl.ti- - ~Se. the ninreg v-ialmrIed oca In ede .g group. raaIosf "daily ge`sra int-re .. appa dfttad IaWapeadttel

pahlloation devte preily ternndeggaee s.It in. asiwFOOD AcD NtfrRITIOt to he "daily" .if in appears st least fear tles A

i.don of Pon Prductio ne aia196-1i ldAu of p-r capita anua Cmi-.eni A..1tisdmea eat Ca-its ear tu - Reed a the .i- atproductionof all foo coesodit "S. roucio eldes esad sad feed and trban sol-d during nh year, imIolang adalaitm tn drive-in eie

is r clenarYear boeta_ Coand itl,e ove tIIay goods (e.g. enatsed ehiln name..

ir ae nlod`d). Aggregec prod-ction f eah cn...ttr is base In 14161 FORMnat-ioa averge Producer pricneaigtst; 1961-65, 1970, and 1979 data. Tate.1 inhee farce (thoeees rntecal soatt P -vne amaledge

Far caite surir ufcolorie (reteat ofranuirE_ns Coepotef fine aree foroen and al edht en dladag -nniva tdeAt, ent.enetg eqoialan of nc fod suplies valible i ototry Pet iotln coverin Popalsea at all ages. brfinntta in verten r-otearPar day. a-ilable eupplins coprise d-istt Pro.`duccrn tport lees net c.nr-bin; 1960, 197 and 1979 dato.

,,Pore, en ca, e insok.nt ppl-e nld nia ed gd, Pi tent(-Pi ea oc aprtg ef tnto LI&ne tart.q .. ine usd In f nod Proce...iag, anld loea inderhto.hqair- Meinalt.r..eoar Lee tarts. in fereie. tn....trP, bettg sad

sente arn estnetedby PAO base. e ph,slirga inda for n.reI ecti- flahIng Ae percentage of ctal lahr tarts; 1940, 1970 ad 1i79 data,vity go taih conideritgectccoilteepertutr body nihs-g nusr ete - Lhor forc in siin. oetrL"n. ftrrand ed-n b.itthulo o~f5p popultion, and allowIng 10 percen fr assIt ned -eirnc, ne end gas .a pettg MPf .tota lahr fa..ts; 1960,

hnand leve; 1911-5 197, and! 197) date. 19y04sa 19179 daa

oa sp ly offon perday.Net enpIYy of food Is defined as shove. L.- atvy geapo ntdaeralmAle n aelhrtesaqot1 ats tot all coutries etabliahad by USDtA provide for sines poroentage oftt,sl and fe-lt poprlatif of all a-m respeatively

allowerce ci 60 grana rf tota~~~~~~lprtean par day end 0 e-s of auteal and 1960 1970. and 1979 dAte. These en heAd en ILD'a Pertiolatite ratwpulseprucOn, f whih 10eras etoud be erte P, I---at Ths:sod rfecinng-nnsrntr f nbhppoeten M lame tea -rd. A

arde arJlwatt ththos ot75 gra-n If nta. prooi and 23 scan of fs- satntA.e are tru etinaLsvreaaimul protin s nI vtaefor the -td,P-oPt...d by FAO in the Third tinat batenIdeny tnlo - latin ef popeitiom ean 1i and 65 ed eedotd Pond Survey;'1961-65, 197 trd 17 aa ttettlihrfr

Per" tt orteo uat fo anima end raie Protei auppy tf food de-tiedfom tmas ndpuss n tL. o day; i9tl-h5, 1970 nod 1t77 data. Irie odnhtru

Child (,nat 1-41 a -calt lanee thoneand) - Aoona dentha Par rhoun in Pnrc1aTseart Pint nts(akt nhad id aevdh ihagegrop -4 years, in biide an this agn gio; for mat de...lcpi.tgio- Percent.rNhest 00 nrn, P.art 2f parost. end peast 40 paintiedaca derived from life tables; 1960, 1970 and 1979 dMr. of honsh.1ds.

HEnALTH Faten TAlenT GYk5PLife toretisno at limbh (tears -Avng ti-hat of yu- of lif.tnrining The ft11ienfn stiatas ar very appr-amte seaean of pevery level,

enbrh ih., 1970 end 1979 date. end shold be nter=rtsd with or=edere la tntleninfant tnrtalitp hate (on t=ood - A-nol deaths of inftent .ndtc e yar ftiegd Abeluta PvtvInteI Ceni 0$ see _teea -net ad renl

of age perfrhango lIve births. Absoite pavoty Inca m-l Is rcan maca leve belen hftok A edemaAtone tn aeWaeI necn fPInoaioo ins ht ndrtl-L- onrcoal deqeat disc pleaesnilnnfn serna0 e

bar of_psople (total, urba.. and 1rura) othtreasonablecsavatafodbeenrcPpI itoa tea otaeenn vutandbat ototmtain teniesd Relatlve Pnverty I-rwLvl(t a-aie re ema

-he sc ta that ftros prolsoctd borehoa, spriga, end senitary sell)at hrresvepetyicwlelson-bdofvrgeartlsPerenagsIf the it treptitiv Ppoploti-ne. EnurhaAtna pabli pere-1 mcd- of nba -etry. Orhen a- ha derived fre the reasfoetain or stadpost loctetd no man then lit eater from A hoc.. mat be leve th adjaiset Int highe cotf inig n ire eaerotaidad as.. o d tIhnreaonbl aces of tblhanboe. iv rua areas tetimate Ponlitl-n Selen obA=ata tnr geLvltett .e

tesonbl aces nud mpy he te ouewfeorsebas f hehoseol ed rurl er-nt of populetie (orhe sd Intl lear aslt

Atrese to ic-to~i Oepyani (oretofrrMaIc - iotal, -vbeoadmea'tc-t or people (ttl,uban, and ttal served by ancet dispoen as

the co.iacic and disposl iho nihu retat f hrstscrtlet itetallattoasth. t f P~~i. T t Conhai Anlyt en. d froj-rtlw hamarte-tPotulcion ar Pbsicln - Pouiecin diided by n-bar of p-eticlag physi- hap 19f 1

dan- q.ualfId from a madirc. chol2 a1t _uivrity level.P-otult -ot ...nuring P erect -Ptuaoidividad by Ioehe of practicing

saleeedsEa1eegoduatsncs,practical nures and ..sIIc-ct norses

- 20 -

ANNEX 1Pag 4 of 5

COUNTRY DATA - NIGER

GNP PER CAPITA IN 1979: US$250

GROSS NATIONAL PRODUCT IN 1979 ** ACTUAL RATE OF GROWTH (X, CONSTANT 1972 PRICES)

US$ Million $ 1972 - 79

GNP at Market Prices 1,450 100.0 4.2Gross Domestic Investment 424 29.2Gross National Savings 220 15.2Current Account Balance 227 15.7Exports of Goods, NFS 423 29.2 7.6Imports of Goods, NFS 578 29.8 9.8

OUTPUT, LABOR FORCE ANDPRODUCTIVITY IN 1979

Value Added (Factor Costs)US$ million %

Agriculture 495 32.4Mining 1/ 297 19.4Industry 269 17.6Services 2/ 468 30.6

TOTAL 1,529 100.0

GOVERNMENT FINANCE

General Government(CFAF billion) % of GDP

1974/75 1977/78 1975 1978

Current Revenues 22.4 56.0 13.4 18.2of which uranium revenue ( 2.5) (24.6) ( 1.5) ( 8.0)

Current Expenditures 17.5 38.7 10.5 12.5Current Balance 4.9 17.3 2.9 5.6Capital Expenditure 1.9 17.6 1.1 5.7External AssistanceOverall Balance +3.0 -0.3 1.8 -0.1

MONEY, CREDIT AND PRICES1971 1972 1973 1974 1975 1976 1977 1978 1979

(CFAF billion at end of year)

Money and Quasi Money 12.1 12.9 15.5 20.3 22.3 29.2 37.6 54.2 66.9Bank credit to Public Sector -2.3 -3.5 -3.4 -7.2 -11.5 -12.3 -16.4 -11.9 -16.4Bank credit to Private Sector 9.7 10.7 12.5 21.0 28.5 28.6 32.7 54.2 74.5

PERCENTAGES OR INDEX NUMBERS

General Price Index (1970=100) 104.2 114.4 127.8 132.1 144.1 178.1 219.2 241.6 259.2Annual percentage changes in:

General Price Index . 9.8 11.7 3.4 9.1 23.6 23.0 10.2 7.3Bank credit to Public SectorBank credit to Private Sector . 10.3 16.8 68.0 35.7 0.4 14.3 65.7 37.5

** Staff estimates.Not available.Not applicable.

1/ Mostly uranium mining2/ Including Government and duties and taxes on imports.

April 2, 1981

- 21 - ANNEX I

Page 5 of S

COUNTRY DATA - NIGER

TRADE PAYMENTS AND CAPITAL FLOWS(in millions of current US$)

BALANCE OF PAYMENTS 1975 1979 MERCHANDISE EXPORTS -/: (Annual Average: 1975-79)

Imports of Goods, NFS 167.8 571.0 US$ Million _

Imports of Goods, NFS 226.5 697.9 U$ilnResource Gap (deficit = -) -58.7 -126.9 Livestock 38.7 15.1

Uranium 177.1 69.2Interest Payments (net) -10.7 -18.7 Groundnuts .6 .2Workers' Remittances -18.7 -31.3 All other 39.5 15.5Other Factor Payments (net) 3.0 . TOTAL 255.9 100.0Net Transfers 77.1 87.6Balance on Current Accounts 8.0 -89.3 EXTERNAL DEBT, DECEMBER 31, 1979

Direct Foreign Investment (net) 15.8 48.7 Public Debt, including guaranteedNet MLT Borrowings 17.0 38.3 Non-Guaranteed Private Debt

Total coustanding andDisbursements (18.8) (.) disbursed 593.2Repayment ( 1.8) (.)

I/ DEBT SERVICE RATIO FOR 1979Other items 1 -19.8 _

Change in Reserves (end year) 5.0 -2.3 Public Debt, including guaranteedForeign Reserves (end year) 51.4 85.3 Non-Guaranteed Private DebtFuel and Related Materials Total outstanding and

disbursed 3.4%2 of imports 12.8 11.0

IBRD/IDA LENDING, December 31, 1979RATE OF EXCHANGE

Outstanding and disbursed 48.11971: US$1.00 = CFAF 277.03 Undisbursed 53.41972: US$1.00 = CFAF 252.21 Outstanding including undisbursed 101.51973: US$1.00 = CFAF 222.701974: US$1.00 = CFAF 240.501975: US$1.00 = CFAF 214.321976: US$1.00 = CFAF 245.001977: US$1.00 = CFAF 245.001978: US$1.00 = CFAF 220.001979: US$1.00 = CFAF 212.72

1/ Including errors and commissions.2/ Recorded exports only.

* staff estimates. April 2 1981not applicable.not available.

- 22 - ANNEX IIPage 1

THE STATUS OF BANK GROUP OPERATIONS IN NIGER

A. STATEMENT OF IDA CREDITS (as at January 31, 1982)

Borrower: Republic of Niger

US$ millionCredit Amount (less cancellation) 1/Number Year Purpose IDA Undisbursed

Eight credits fully disbursed 35.9

441 1973 Drought Relief 2.0 0.2

612 1976 Niger Third Highway 15.6 1.8

800 1978 Forestry Project 4.5 0.2

809 1978 Employment CreationProject 5.0 1.1

851 1978 Irrigation 15.0 5.0

885 1979 Livestock 12.0 9.7

886 1979 Feeder Roads 10.0 5.3

967 1979 Dosso AgriculturalDevelopment 20.0 19.9

1026 1980 Second Maradi RuralDevelopment 16.7 15.3

Total 136.7 58.5

of which has been repaid 0.5

Total now outstanding and held by IDA 136.2

Total undisbursed 58.5

1151 1981 Education 2/ 17.3 3/ 17.3 3/

1/ Prior to exchange adjustment.2/ The Credit was signed June 19, 1981, and is not yet effective.3/ Million SDRs.

- 23 - ANNEX IIPage 2

C. PROJECTS IN EXECUTION AS OF MARCH 1, 1982 1/

Credit 612 - Third Highway Project; US$15.6 Million; Credit of March 5,1976; Effectiveness Date: January 31, 1977; ClosingDate: December 30, 1981 extended to June 30, 1983

This project includes: (a) a four-year program of periodic mainten-ance, including procurement of equipment and training of specialized publicwork staff, (b) construction and improvement of the Zinder-Nigerian borderroad (113 km) and of the Maradi-Nigerian border road (40 km) and (c) con-sulting services for supervision of road construction and a survey of thedomestic construction industry. Construction of the Maradi-Nigerian borderroad was completed ahead of schedule and the Zinder-Nigerian border road isexpected to be completed shortly. A study of the domestic constructionindustry is currently underway, as are studies to prepare a proposed fourth

project.

Credit 800 - Forestry Project; US$4.5 million; Credit of June 7, 1978;Effectiveness Date: February 7, 1979; Closing Date:December 30, 1981 extended to June 30, 1982

This project will assist Government in its efforts to establish 400ha of pilot irrigated plantations and 700 ha of pilot rainfed tree plantations;improve the rural forestry activities of the Forestry Department; finance atraining program in extension services; provide assistance to research anda workshop maintenance unit. The Project Management Unit created within theForestry Department to assist with coordinating and monitoring project activi-ties is fully operational and project implementation is almost completed.

Credit 809 - Industrial and Artisan Sector Employment Creation Project;US$5.0 million; Credit of June 7, 1978; Effectiveness Date:February 7, 1979; Closing Date: June 30, 1982

This project aims at assisting Government in the promotion of morelabor intensive employment creation in Niger's industrial and artisan sectorswhile strengthening the sector's institutional infrastructure, by providinga line of credit, training and technical assistance to BDRN, including thedevelopment of a bank management training program of the Ecole Nationaled'Administration, financial and technical assistance for creation of OPEN, thenew agency created under the project to provide technical assistance andtraining for local enterpreneurs, and by assisting the Artisans Center toimprove the productivity and employment of artisans affiliated with theCenter. Project implementation is progressing satisfactorily.

1/ These notes are designed to inform the Executive Directors regarding theprogress of projects in execution, and in particular to report problemswhich are being encountered, and the action taken to remedy them. They

should be read in this sense, and with the understanding that they do notpurport to present a balanced evaluation of strengths and weaknesses inproject execution.

-24 - ANNEX IIPage 3

Credit 851 - Irrigation Project; US$15.0 Million; Credit of February 15,1979; Effectiveness Date: October 12, 1979; ClosingDate: June 30, 1983

The project aims to assist the Government in expanding cereal andvegetable production along the Niger River through development of a 1,550 hapolder; providing agricultural development services on neighbouring irrigationschemes (1,215 ha) and dryland farming plots (9,000 ha); and in creating thenecessary institutional framework for the implementation of its irrigationdevelopment program through establishment of a national agency (ONAHA) whichwould integrate and strengthen the activities of construction and managementof the irrigation schemes. The project will also finance the preparation of afeasibility study for a nearby polder, as well as the services of a financialcoordinator to be attached to the Ministry of Rural Development to assist inaccounting and financial management of the various IDA-financed agriculturalprojects in Niger. Due to initial delays in credit signing and in the awardof contracts for equipment and engineering services, construction of theirrigation works started in March 1980. The construction of the first 230 hawas completed in August 1981 and they are presently under irrigation. Thecompletion of an additional 900 ha is foreseen by July. Completion of projectbeyond that will depend on a survey of recently detected salinity problems.

Credit 885 - Livestock Project; US$12.0 Million; Credit of April 27,1979; Effectiveness Date: October 12, 1979; ClosingDate: March 31, 1985

A combination of health and productivity services is being madeavailable to herd owners in the pastoral and cropping zones. An innovativeapproach is being launched by establishing Associations of Pastoralists,legally recognized cooperative entities based on existing social groups.Members of these Associations will have access to a greater range of healthservices, new forms of credit for backgrounding and breeding, improvements toexisting wells and extension of watering points and advice on range management.The project is also providing assistance to the Livestock Department toimprove competence in delivery of productivity services. Project implementa-tion proceeds satisfactorily, particularly in drug distribution for which aself-financing network of 190 paraveterinary works has been set up.

Credit 886 - Feeder Road Project; US$10 Million; Credit of April 27,1979; Effectiveness Date: December 10, 1979; ClosingDate: June 30, 1984

The project will improve 1,000 km of feeder roads which supportGovernment's agricultural program and create an appropriate structure for theexecution of comprehensive feeder road programs. The project will financehighway construction equipment and spare parts; labor, materials and suppliesfor the improvement program; offices for and technical assistance to the newlycreated Feeder Road Technical Section to aid in implementing and monitoringthe improvement program and in training technicians, mechanics, equipmentoperators and training officers. Equipment procurement is complete. Follow-ing an intervention by the President of Niger construction standards have beenraised, and the construction target lowered from 1,000 kms to about 800 kms.

- 25 - ANNEX IIPage 4

Credit 967 - Dosso Agricultural Development Project;US$20.0 Million; Credit of June 12, 1980;Effectiveness Date: February 25, 1981;Closing Date: June 30, 1985

The project comprises a five-year program intended to increasefarm incomes and improve the welfare and standard of living of the ruralpopulation of Dosso Province and to build up an extension service through:the introduction of improved farming practices for rainfed cereals, cowpeasand groundnuts; the improvement of vaccination coverage, delivery of drugsand feed supplements and animal husbandry practices for beef cattle andwork oxen; the construction of small-scale irrigation schemes for 200 ha ofbottomlands; the introduction of a Training and Visit extension system; thestrengthening of the farm input and implement supply system; and appliedresearch. Training, extension, input supply and credit services would be madeaccessible to about 80,000 farm families, of whom 25,000 are expected to adoptthe recommended improved practices. In spite of one year delay in start upperiod input distribution targets have been met both in agriculture andlivestock. Organizational conflicts between project management and executingagencies may still frustrate these results for the next campaign.

Credit 1026 - Second Maradi Rural Development Project; US$16.7 Million;Credit of June 6, 1980; Effectiveness Date:February 26, 1981; Closing Date: December 31, 1985

The project follows up on the First Maradi Project. It includesthe expansion of improved agricultural practices in rainfed farming areas;training of extension staff, young farmers and blacksmiths; agriculturalcredit; development of irrigation potential in Maradi; applied agriculturalresearch; seed multiplication; functional literacy and health proposals.Some cost overruns are anticipated on the land development component as aresult of omissions and underestimations.

Credit 1151 - Education Project; SDR 17.3 Million; Credit of June 19,1981; Effectiveness Date: June 30, 1982;Closing Date: December 31, 1987

The project comprises a five-year program to improve educationalplanning and the preparation of education projects, planning for civil serviceupgrading and the training of rural development workers. It includes (a) tech-nical assistance and fellowships to assist in educational planning and projectpreparation; (b) technical assistance to the Ministry of Civil Service andLabor to establish a training directorate, review the needs for upgrading andformulate pilot upgrading programs for the public administration; (c) thefinal phase of expansion and upgrading of an agricultural technician traininginstitute at Kolo; (d) the development of a new animal production trainingschool at Kolo; and (e) technical assistance and operating costs for projectmanagement.

- 26 -ANNEX III

NIGER

SECOND FORESTRY PROJECT

Supplementary Data Sheet

Section I: Timetable of Key Events

(a) Project Identification Missions: November/December 1980(b) Appraisal Mission: May/June 1981(c) Date of Completion of Negotiations: February 18, 1982(d) Planned Date of Effectiveness: June 30, 1982

Section II: Special Bank Implementation Action

None

Section III: Special Conditions

A. The following actions are conditions of effectiveness:

(i) The Technical Advisor financed by FAC has been employed (para.28(i));

(ii) All conditions precedent to the effectiveness of the CCCE Credit andthe FAC grant have been met (para. 30); and

(iii) A Special Account and Project Account have been opened and theGovernment's initial deposit representing its estimated quarterlycontribution to operating expenditure has been made to the ProjectAccount (para. 33).

B. Other conditions:

(i) the Government will fix an acceptable permit price for wood fromplantations and will review in consultation with IDA, the permitprice for natural forest wood with a view to increasing theseprices to reflect the value of wood products to the economy and toencourage wood conservation, all before December 1983 (para. 19).

(ii) working agreements will be signed between the Project Unit and bothONAHA and INRAN defining the responsibilities of each in the opera-tion of plantations within the agricultural perimeters and ofresearch (para. 28(c) and (e)).

________________________________________ lORD 15903~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IRI 19Q

F- $\0L0440, ASEA 4~ h' i- 2r,4 ETME

NJ -> $L L I B Y A

N I r G E R*'5e

SECOND FORESTRY PROJECT K.Eo F5na Reserves

/X0

Forest Re-eres/

VEGETATION ZONES ACCORDING TO JC4t, 1979 / \ (|.

000010on 0.40 *e/ : ( ,

| DSET DUNES 414 lOOF VSEATION -/ li T .,

NDTHR SAELTOSCTrON ZOE0A lC~ ' 040 104 lOs .41 reollI = 4 -LIi = 0SF SAoPlOtO4 S 04} 4= LI

7<==>\ S.donon ... s440400 r ~ . .

® D eeorrrrenr CepItele : .. L : ? pgL!ijE5L :' : !-1

- Oeportrrenr Roorrerres >9

NOrENLIMIT Of C14r

1 r~~~~~~~~~~~~~~~~~~~~~~~0 - - -. o

TA1 UA 4 _ =

oR sCh d

U P P E R t;Fot

VO LT A It

12' nse E .*s.M Ns s r >11 $ 1 | ~~~~N I G E R I A f 12

0~~~~~~~~~~~~~~~~~~ C~~~~~~~~~~~~~~~~~

,S,K2!¢=,, UfP./sS0b.u! B E N I N - I In (2 j |^\< S E¢ 10 12 14 > | ot~~~~~~~~~~~~~~~